The UK unemployment rate remained at 4.9% in the three months to May 2026, with several reports noting the figure steady or edging higher year-on-year. Payroll and HMRC data show payroll jobs fell by about 85,000 year on year, while total employment rose markedly, indicating a mixed picture of the jobs market as vacancies continued to decline. Wage growth remains mixed: average earnings excluding bonuses is 3.4% year over year, with earnings including bonuses at about 4.3%, offering only a partial relief for real pay. The data also show ongoing underemployment, with around 1.28 million people holding second jobs, and the broader employment rate hovering around the mid-70s for working-age adults. Taken together, the reports suggest a cooling labor market that still supports relatively high employment levels, leaving policymakers cautious about the trajectory for inflation and growth. Market reactions linked wage dynamics and payroll trends to currency moves, underscoring the importance of the labor market for monetary policy going forward.